Michael Pento - Flocking Back Into Hard Money, Gold

Financial analyst Michael Pento says, “Gold is going up in all currencies because investors are coming to this realization, or epiphany, that you cannot trust central banks. In 2008, we had the Great Recession. We had the bursting of asset bubbles. We had the bursting of the housing bubble. We had the bursting of the stock bubble. The Federal Reserve came in, and it was not only the Fed, we had central banks from across the world increase debt by 40%. 40% since 2008 on a global basis, and they took interest rates, which were already low, down to 0% and negative % and left them there for going on almost seven years. People had the audacity to believe that this was going to be a success story. They are slowly learning we have solved nothing. We have just made all the problems associated with the great recession much, much worse. As that realization unfolds, people will be flocking back into hard money, and that means gold.”

What will trigger the next financial meltdown? Pento says keep your eye on the land of the rising sun, heavily leveraged Japan. Pento predicts, “I think the Japanese central bank is absolutely going to destroy that currency. . . . When that unwinds, you are going to see a massive wipeout of equity prices. That just metastasizes across the globe.”

- Source, USA Watchdog